Although the bearish price movement was short - lived, in this case, you could have still made
a nice profit on this trade due to the high risk to reward ratios that the harami patterns typically offer.
It is the underlying reason why when you make
a nice profit on a trade you do not properly value those profits, which then causes you to jump right back into the market and make a «stupid trade».
Not exact matches
The difficulty of this is that it's human nature to not want to exit a
trade when it's up a
nice profit and moving in your favor, because it «feels» like the
trade will continue
on in your favor and so you don't» want to exit at that point.
Nice article again Nail, i'm
trading for a month now, first week 25 %
profit on my balance, now overall 30 % losses, but my goal is to have a modest
profit at the end of the year.
Instead, we may only take a small handful of
trades each month, but we feel confident about those
trades and as a result, we give ourselves a chance of making a
nice profit on them.
You probably would classify most of those losses as «stupid losses», because after the
trade was over you KNEW that you just entered because you were being greedy with the
profits you previously made
on your
nice winner.
Scenario: It seems like whenever you hit a
nice winning
trade and make a solid
profit you simply can not hold
on to that
profit for more than a week or two.
The stock price has since surpassed this so I expect my stock to be called away from me giving me a
nice profit on my first
trade.
I
trade 4 hour chart and it happened
on Friday with EURUSD I took a
nice profit of $ 200 when the market started to breath against me but when I checked after 2 hour i could have made $ 400 more.